In word 2007, the "add space before paragraph" did not work for me by itself.
My "normal" style was set to line space at 1.15. I had to left click the picture, click the line spacing options (as described above), and select 1.0 as the spacing increment. I left the "add space before paragraph" option selected and the issue was resolved.
Just posting this for others. I was so tired of that issue ... thanks to all who took the time to post suggestions.
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